MakeMyTrip sets up $15 mn innovation fund

Online travel firm MakeMyTrip is instituting a $15 million (over Rs 90 crore) innovation fund to support early stage companies in the travel space.

"The fund will focus on start-ups in travel technology with a special focus on mobile and IP based companies," MakeMyTrip said in a statement.

The firm's Co-Founder and CEO-India Rajesh Magow told PTI: "We are creating a fund of $15 million which is 10% of our cash position to back the new innovative ideas in travel space.

MakeMyTrip will take a equity stake in the young companies in the travel space, he added.

The Board of the company has approved the formation of an investment committee to deploy the funds as per its discretion in various startups and mid-size companies in travel & tourism sector, or technology/mobile companies powering this sector, MakeMyTrip Ltd (MMYT) said.

The committee comprises of 6 directors including the founder Deep Kalra and co-founders Rajesh Magow and Keyur Joshi, it added.

"We've agreed to create a fund of $15 million...To be focused on young and new ventures in the travel technology space for our market. This is an additional prong of our inorganic growth strategy by pursuing M&A opportunities in the travel technology space," MMYT Founder & Group CEO Deep Kalra said.

"We intend to purposefully go out and look for such companies and take early stage positions," he added.

Founded in 2000, MMYT launched India operations in 2005. The Group achieved sales exceeding Rs 7,600 crore in the financial year ending March 2014.